Sales Up, Profits Down

Another round of EMS quarterly reports came out today, as LaBarge and SMTC provided their numbers. Now that the bulk of the major EMS companies have reported, the picture is pretty clear that first quarter revenues were up fairly broadly but profits took a hit.

This is unfortunate, of course, because the margin-sensitive EMS industry relies on leveraging higher sales to drive incremental profit gains.

Based on the consensus forecasts, expect second-quarter revenues to be generally flat, with pressure on margins because of higher component costs due to supply constraints.

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About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow